Effectively, it's a government-run hedge fund that invests in assets like stocks, bonds, real estate, and infrastructure. It's a fairly straightforward process: the government provides funds, and the SWF invest it into risky assets to try to earn profits. This is the same as any investment company, only that its sole investor is the government.

The Treasury and Commerce Departments are drafting a plan detailing how a federal sovereign wealth fund might be structured, funded, and managed.

President Donald Trump’s order for the proposed fund calls for a plan within 90 days that details the vehicle’s purpose, funding mechanism, and governance structure.

President Donald Trump signed an executive order last week to create a sovereign wealth fund, similar to those of nations in the Middle East, Europe and Asia. The funds, which typically use surplus wealth, operate by making direct investments (like stock, bonds, real estate, equity funds, etc.) with government dollars.

Trump’s executive order creates a sovereign wealth fund to invest in key sectors and possibly acquire TikTok. Here’s how sovereign wealth funds work.

President Donald Trump’s executive order to create a plan for a U.S. sovereign wealth fund would follow those of Norway, Saudi Arabia, China and others.

Trump proposed setting up a fund that would finance "great national endeavors" including infrastructure projects while campaigning last year.

Tucked into the stack of the more than 50 executive orders President Trump has signed since taking office is the plan to create a new sovereign wealth fund. But what exactly will it do and where will the money for it come from?

President Trump is taking steps to overhaul the way the U.S. government invests its money and change the nature of America’s financial presence abroad. The president signed an executive order

The fund will invest in sustainable high impact projects across sectors such as renewable energy, advanced manufacturing.